I think that the highest rate of income tax in USA is 35%? But don't people have to pay an additional state?

tax as well? Which would bring the real rate to a higher level? I'm confused!

3 Answers

  • Judy
    Lv 7
    1 decade ago
    Favorite Answer

    Most states also have a state income tax, and some areas also have a local income tax. These are additional to federal, and at the highest bracket could add anywhere from a few % to around 10% for CA and 11% for Hawaii.

  • Anonymous
    1 decade ago

    Yes, the pay state tax, some even pay a city tax ( NY for example). Then there's sales tax which takes a pretty good bite. And real estate tax if you own a home

  • tro
    Lv 7
    1 decade ago

    not currently

    but the states that have income tax, yes, that tax is figured separately from the Fed and each state is different

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